The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1887-12-15

might nave charged any price IOE IL. LII
1869 he was selling steel rails at $llO
per ton. In 1870 his patent ran out,
and steel rails fell to $53 per ton. In
| 1869 in this country the price Of Bess-
emer steel rails was $l32.50 per ton;
and 1871 the price then was $lO2 per
ton, and the manufacturers OF steel
rails in this country seeing that they
could now have the benefit of BessemerS S
invention, and wishing to ward off
foreign competition, sent confidential
communication to the Committee on
WAYS and Means of Congress, asking
for a duty of two cents pound or S44.-
so per ton on steel. Now notice right
here, that this duty was proposed by
the very men who expected to reap the
benefit, and not by Congress at its own
instance. They did not wish the real
reasons and motives to be known. This
letter, nevertheless, was very honest
document; they put in no idle words.
They proposed by means of heavy duty
on foreign steel TO keep that out of the
running to supply the whole domestic
market But the Committee and Con-
gress did not give them all that they
asked, two cents per pound, or S44.SO
per ton, but only tive-eighths of what
they asked, or $28 per ton. Now how
did this duty operate: lst SO far as
the people were concerned. I'd. so far
us the labors were concerned?
First, then as to how it affects the
people: For the thirteen years ending
in 1883, there were produced in the
United States, 6,944 $50 tons of steel
rails. The, average higher American
price of rails for those thirteen years
than English rails was S22.l5 per ton,
which average higher price was the only
motive for laying the duty on the for
eign rails. That is to say, that the effect
of the laying of the duty was to increase
the average American price, not to tile
full extent of the duty, 1913 per ton, but
to only 80 per cent of the duty, that is
$22.l5 Now multiply the total num-
Der of tons produced by the average
higher price, occasioned by the duty,
and you have the enormous sum of
$153 1922 ,2l250
Senator Blaine in his Pennington
speech, estimated that the steel rail
men made for themselves, for the fit
teen years ending in 1885, $3.50 100000
$l53 S22, ,2l2 of which is directly trace
able to the effect of the tariff. Accord
ing to Blaine, their profits We're $3.50
100000. Had IL not been for The tariff,
these profits would have been less the
$153822,212 which would have left
their profits $97, 100000, on capital of
$20,O0OOOO, or 3315 per cent. on the
money invested But as it was, their
profits were $250,0O0,000, over n per
cent. on the capital invested.
The facts that were brought to the
attention of the public by a litigation
brought before the Orphans Court of
Pennsylvania, in regard to the estate of
J. Edgar Thompson, large steel rail
manufacturer, show in very tangible
and precise form the profits that have
been realized by the steel rail manufac-
ers in which Mr.. Thompson was stock
holder, and showed that there had been
several years during the decade of 1870
and 1880 in which the profits amounted
to n per cent. Take the year 1880.
There were produced in the United
States 85l, 200 tons of steel rails; and
the average difference in price of Amer
lean over English rails was $2750 per
ton, multiply the number of tons pro-
price, and you have the enormous sum
vi S23, ,42l, $50 received above the Eng
lish price. The American rail makers,
by means of the duty collected from
the people, 1923 ,42l $50, on the pretence
that it was needed to cover the differ
ence between the wages paid by them
and their English competitors. But
the whole wages paid by the American
makers to their workmen i'll this same
year amounted to only $4, ,934 1923. That
is to say, they collected from the people
by reason of the duty $18,487, ,425 more
in that year than they paid to their la
borers; and yet we are expected to be-
lieve that this duty was paid by the
people, not at all for the benefit of the
but solely for the benefit
Of the laborers. Had the people paid
the labOrers employed double the
of wages they actually receiv-
ed, and allowed them to livea life of
Idleness and ease, and paid the manu-
facturers per cent. interest on the cap
tai invested, they would have saved in |
that year by the operation, the sum of |
S13, 1853, ,092, and would have been able |
% have bought their rails at $2750 per |
on cheaper.
Now who is it that has paid the in
,rease in price of $l53,S22,2l2? OF |
course the railroad companies pay it in
he first instance But am pursuaded
o believe that if the companies were
'elieved from this tribute they are now |
to pay they would give such
'ates as even the grangers never
lreamed of. The duty on rails increases
he cost of railroad building about
$1,000 per mile, and the dividend on
his of course has to be paid in the
econd instance by merchants, farmers
md others, who are compelled to pay
high rates of freight for the transporta-
ion of their merchandise and crops.
This being a wheat growing and manu-
acturing State, the farmer and manu-
acturers are especially injured by this
lass of duties.
Governor Gear, of Iowa, Republican
evenue refOrmer, in his inaugural
lddress in speaking of the question
aid: "To State whose products
which are in the main agricultural as
re those of Iowa, anything which en-
lances the cost of railways, thereby
ven incidentally in the least degree in
reasing the expenses of transportation
# her products to the seaboard, which
S her great market, is question of
,reat interest to all. In view of their
,reater strength and durability which
essens the cost of replacement, all the
,reat trunk railway lines of the country
ire adopting Bessemer steel rails. The
of this class of rails in
he United States is controlled by a
of not exceeding, l think,
en- firms in number. This combina-
ion is protected by high special tariff |
which prevents the imposition of |
oreign rails to any extent, thereby in
,reasing the cost of railways of the
country. Without discussing the tariff !